Dhabriya Polywood Ltd’s Credit Rating Upgraded by CRISIL Amid Enhanced Profitability and Operational Growth

Dhabriya Polywood Ltd’s Credit Rating Upgraded by CRISIL Amid Enhanced Profitability and Operational Growth​

CRISIL Ratings has upgraded the credit rating for Dhabriya Polywood Limited (DPL) regarding its long-term bank facilities, reflecting improved operational performance and a healthy financial risk profile. The upgrade was issued in July 2026 following an evaluation of the company's business and financial standing across the group entities.

The rating action focused on the bank facilities for DPL, which received the upgraded rating from CRISIL from BBB/Stable to BBB+/Stable. This facility relates to a total amount of Rs 35 Crore in long-term bank loans.

Financial Performance and Rating Insights​

The upgrade is attributed to significant improvements in DPL's business risk profile, driven by steady growth in scale and enhanced profitability. In fiscal 2026, the company reported revenue of Rs 264.5 crore. The operational performance showed marked strengthening, with the EBITDA margin improving to 20.6% in fiscal 2026, up from 16.0% recorded in fiscal 2025. This margin expansion was primarily supported by the incorporation of higher-value products such as fluted panels and aluminium facades.

The financial risk profile remains robust, supported by moderate networth and low leverage. As of March 31, 2026, tangible networth stood at Rs 130 crore. The company's gearing ratio and the Total Outside Liabilities to Tangible Networth (TOL/TNW) ratio were reported comfortably at 0.59 and 0.76 time, respectively.

Key financial indicators for the group across recent fiscal years are detailed below:


*Note: Figures for the period ended March 31, 2026 are provisional.

Business Operations and Risk Factors​

The analytical approach by CRISIL Ratings considered DPL along with its subsidiaries, including Dynasty Modular Furnitures Pvt Ltd (DMFPL), Polywood Profiles Pvt Ltd (PPPL), and Polywood Green Building Systems Pvt Ltd (PGBSPL), collectively referred to as the Dhabriya group. The group maintains an established market position, bolstered by over three decades of promoter experience in manufacturing PVC products.

The company enjoys a diversified customer base and product portfolio. It serves fabricators, real estate developers, and institutional clients who use extruded PVC profile sections, Dstona sheets, and mouldings for various furnishing needs. The business maintains an extensive distribution network through over 800 dealers and distributors nationwide.

While the financial risks are managed well, CRISIL Ratings identified key sensitivities related to market dynamics:

• Raw Material Volatility: Raw materials such as uPVC powder, PVC resin, stabilisers, impact modifiers, and additives account for 50-55% of the total cost of sales, making operating margin susceptible to price variations in these inputs.
• Industry Cyclicality: The reliance on windows and doors manufactured using PVC and uPVC profiles links the business to the performance of the real estate sector, which is generally linked to broader economic trends.

Liquidity and Debt Protection​

The company maintained a healthy current ratio of 1.82 times as on March 31, 2025. Bank limit utilisation averaged 54% over the twelve months through May 2026. The debt coverage indicators remain strong, with an interest coverage ratio of 9.8 times in fiscal 2026.

The financing details for the rated instruments are summarized as follows: